PSU stocks have lost ₹6 trillion in market value
Since late February, PSU stocks have taken a big hit, losing ₹6 lakh crore in value, as tensions in West Asia pushed Brent crude into triple digits (above $100 a barrel) and sparked sharp double-digit gains in recent sessions.
The BSE PSU index has dropped 8% from its peak.
PSUs are not just another sector
PSUs aren't just another sector: they make up nearly 15% of the BSE's total value and handed out ₹1.4 trillion in dividends last year, about a quarter of all payouts.
But with significant FPI selling in March and the rupee slipping, these shocks can ripple through the whole market.
Oil companies and PSU banks most affected
About 80% of listed PSUs saw their stock prices fall during this period, with oil companies like Bharat Petroleum and Indian Oil down over 20%.
PSU banks saw larger declines — several individual PSU banks fell in the 13-16% range (for example, Bank of Maharashtra >16%; Uco Bank, Canara Bank, Bank of India and Punjab National Bank down about 13-15%).
Other industries like paints, tires, and basmati rice exporters also hit yearly lows.
Defense PSUs buck the trend
Defense PSUs such as BEL actually bucked the trend and gained ground, thanks to more defense orders coming in as countries boost spending amid rising geopolitical risks.